Trump arrived in Malaysia for an ASEAN summit, declaring after the talks: “I think we will reach an agreement with China.”
U.S. President Donald Trump speaks during the ASEAN-U.S. summit in Kuala Lumpur, Malaysia, October 26, 2025. PHOTO: REUTERS
Top Chinese and US economic officials agreed on the framework of a trade deal on Sunday, with US President Donald Trump expressing confidence in reaching an agreement with Chinese President Xi Jinping when they meet in the coming days.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang on the sidelines of the ASEAN summit in Kuala Lumpur for a fifth round of in-person talks since May.
“I think we have a very effective framework that leaders can discuss on Thursday,” Bessent told reporters.
Learn more: US, China work to ease tensions ahead of Trump-Xi talks in Malaysia
Bessent told NBC’s “Meet the Press” that he anticipated the deal would delay expanded Chinese export controls on rare earth minerals and magnets and avoid a new 100% U.S. tariff on Chinese goods threatened by Trump.
He said Trump and Xi would discuss purchases of soybeans and agricultural products from U.S. farmers, more balanced trade and resolving the U.S. fentanyl crisis, which was the basis for the 20% U.S. tariffs on Chinese goods.
China’s Li said the two sides had reached a “preliminary consensus” and would then go through their respective internal approval processes.
“The US position has been tough,” Li said. “We have held very intense consultations and engaged in constructive exchanges to explore solutions and arrangements to address these concerns.”
Trump arrived in Malaysia on Sunday for an Association of Southeast Asian Nations summit, his first stop on a five-day tour of Asia that is expected to end with a face-to-face meeting with Xi in South Korea on October 30.
After the talks, he struck a positive tone, saying: “I think we will reach an agreement with China.”
Trade truce
Both sides are seeking to avoid an escalation of their trade war after Trump threatened new 100% tariffs on Chinese goods and other trade restrictions starting Nov. 1, in retaliation for expanded Chinese export controls on magnets and rare earth minerals.
Beijing and Washington have lowered most of their three-digit tariffs on each other’s goods as part of a trade truce set to expire on November 10.
The S&P 500 gains more than three-quarters of a percent and the Nasdaq climbs more than 1%.
U.S. and Chinese officials said they discussed expanding trade, an extension of the truce, fentanyl, entry fees at U.S. ports, rare earths, TikTok and more.
Li called the discussions “frank,” while Bessent said they were “very substantive negotiations.”
Bessent said the truce could be extended, pending the president’s decision, which would be a second extension since it was first signed in May.
Discussion points
While the White House has officially announced the highly anticipated Trump-Xi talks, Beijing has yet to confirm that the two leaders will meet.
On the sidelines of the ASEAN summit, Trump hinted at possible meetings with Xi in China and the United States.
“We agreed to meet. We’re going to meet them later in China, and we’re going to meet in the United States, either in Washington or Mar-a-Lago,” he said.
Among Trump’s talking points with Xi are Chinese purchases of American soybeans, concerns over Taiwan, a democratically governed country that Beijing considers its own territory, and the release of imprisoned Hong Kong media mogul Jimmy Lai.
The detention of the founder of the now-defunct pro-democracy newspaper Apple Daily has become the highest-profile example of China’s crackdown on rights in Hong Kong.
Trump also said he would seek China’s help in Washington-Russia relations as Moscow’s war in Ukraine continues.
Also read: China’s new five-year plan increases focus on industry, technology as US tensions rise
Fragile truce
Tensions between the world’s two largest economies have escalated in recent weeks as a delicate trade truce, agreed after a first round of trade talks in Geneva in May and extended into August, failed to stop the two sides from attacking each other with more sanctions, export curbs and threats of harsher retaliatory measures.
The latest round of negotiations likely focused on China’s increased controls on rare earth exports, which have caused a global shortage.
That prompted the Trump administration to consider blocking software exports to China, from laptops to airplane engines, according to a Reuters report.
